AMD Chips Drive Revenue Up by 14 Percent

By: John Lester
Staff Writer
Published: Oct 17, 2008

AMD on Thursday reported a third quarter loss of $67 million. However, sales for AMD chips rose 14 percent. Advanced Micro Devices net revenue rose to $1.78 billion.

Advanced Micro Devices Inc reported Thursday that its third-quarter loss was much smaller than analysts had expected. The chip maker posted a loss of $67 million in comparison to $396 million in the same quarter a year earlier.

Sales for AMD chips were steady as the business technology company reported a gross margin increase to 45 percent. Analysts had expected 41 percent.

AMD's net revenue rose 14 percent to $1.78 billion. Analysts' had expected $1.48 billion. AMD licensing fees rose to $191 million in third-quarter earnings.

Despite the company stock dropping by 50 percent since the start of the year, it rose 10 percent on Thursday after-hours trading. The stock is trading at $4.55 a share.

The company expects fourth-quarter revenue to be roughly the same.

Last week, AMD announced plans to split the company into two entities. One portion will continue to design its AMD processors while the other will control manufacturing. The manufacturing will be funded by the Advanced Technology Investment Company, owned by Abu Dhabi government.

Advanced Technology Investment said it would invest up to $8 billion in the company's factory spin-off in exchange for a 55.6 percent share in the new company.